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Tesco Malaysia Case Study

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Introduction Tesco Stores (Malaysia) Sdn Bhd owns and operates hypermarkets in Malaysia. It offers fresh produce, groceries, household items, and apparel and its own food and non-food products. The company was incorporated on 29thNovember 2001, as a strategic alliance between Tesco PLC UK and local conglomerate, Sime Darby Berhad of which the latter holds 30% of the total shares. Tesco opened its first store in Malaysia in February 2002 with the opening of its first hypermarket in Puchong, Selangor. Tesco Malaysia currently operates 49 Tesco and Tesco Extra stores nationwide. In year 2003, Tesco launched Tesco own brand, Tesco Value. In 2004, Tesco Malaysia launched its own house brand, Tesco choice. In December 2006, Tesco also acquired Makro Cash & Carry in Malaysia, a local wholesaler which was rebranded to Tesco Extra and provides products for small local retailers.In 2007, Tesco launched customer loyalty card, ‘ClubCard’. Club card has received an overwhelming response from customers with over 2 million household members signed up to date. As of January 2009, Tesco have rewarded nearly RM10 million worth of Club card Cash Vouchers to the customers. Later in year 2010, Tesco introduce Green Club card and the Green Club card scheme. Tesco launched Green Club card Points to incentivize customers shopping with their own bags, introduce degradable carrier bags, and promote positive behaviour among employees through Energy League competition and a recycling centre to
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Club cards is like a loyalty programme that Tesco have set up; each time a customer spends money they receive a certain amount of points (depending on what they bought, the amount of points received varies on how much you spend). After they gather up the points they have received, they get vouchers to use and redeem on their next purchase. This sales technique has been put in place to make sure customers have the best shopping experience

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“To be a leading environmentally responsible retailer through focused resource stewardship by our associates and venders” (Kohl's Corporation, 2016). Many green initiatives have been made to support this mission, including recycled content gift boxes, restroom papers, merchandise bags, office supplies and an outstanding number of 700 Energy Star labeled stores. (Kohl's Corporation,

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TESCO is a British multinational headquartered in UK , it was founded in 1919 by Jack Cohen , he began offering extra goods in London , on primary day he earned 1£ from offers of 4£ , In any case, the Tesco mark get to be distinctly unmistakable in five years and after that later inside 1924, when Mr Cohen purchased a shipment of tea from Mr T.E Stockwell. Which was then join later with the initials letters to shape Tes-co and Mr Cohen opened a leader Tesco store in Burn Oak, North London. In 1930 TESCO brand continued to evolve , MR Cohen bought a land and expanded the business, on 1947 TESCO floated on the London Stock Exchange , it had the self -service store back in 1940. TESCO is one of the biggest worlds retailers, it’s present in 11

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One example of how the government can have effect on Tesco would be through taxes this could affect Tesco greatly as “The UK government has recently adopted a tax measure that affected Tesco. In 2011 the UK government increased the VAT rate from 17.5% to 20% with the aim to increase government revenue by £13 billion per year” this could have huge effects on Tesco as its going to be effect the amount of revenue that there getting each year this could affect the amount of products they can buy or the employees they have it could also affect the amount of stores they can build affecting their growth. An increase in the VAT rate leads to lower customer spending. Therefore, an increase in the VAT rate negatively affected the sales revenue generated by Tesco. Sales revenue is the key part of Tesco increasing their income of the organisation and so has an effect on their profits however this is still nothing in comparisons revenue this year.

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